Peak Demand Charge Reduction in Microgrids through Adaptive Optimal Energy Management

Abstract

This paper analyzes demand charge reduction potentialin microgrids. It first categorizes different tariff anddemand charge programs from the perspective of utilityand consumer. It then gives analysis of how theconsumer load type and profile has different potentialfor different demand charge programs. A descriptiveevaluation of different decentralized energy sources inmitigating the peak demand is given. Finally, peakmitigation through microgrid optimal energymanagement and economic dispatch is presented wherethe benefit of having multi-generation microgridprovides superior solution in comparison to simplesolutions which are based on PV and battery only.